Delmarva Power's rate increase plans draw heat from state, feds
One of the Eastern Shore’s largest electric providers has plans to raise the rates for companies and consumers, but the Maryland agency that represents residents is pushing back against the hikes.
Delmarva Power & Light has about 208,000 electric customers in Maryland, across 10 Eastern Shore counties. The utility is seeking to raise rates by $37.5 million over three years to pay for investments in infrastructure and customer service, according to a multiyear rate plan.
Tyler Anthony, president and CEO of Pepco Holdings, which includes Delmarva Power, said the additional spending will lead to better service.
“Investments in the local energy grid means significant improvements in the quality of service we are providing our customers,” Anthony stated in a release earlier this year.
The independent state agency that represents Maryland’s residential consumers of electricity before the Public Service Commission disagreed with the company’s projection.
“Delmarva Power’s proposal eliminates performance risks and the incentive for the utility to perform more efficiently and keep costs low for consumers,” said David Lapp, an attorney with the Maryland Office of People’s Counsel, in a release.
The Maryland Office of People's Council is an independent state agency that represents residential consumers of electric, natural gas, telecommunications, private water and certain transportation matters before the Public Service Commission, federal regulatory agencies, and the courts.
How much may my electric bill increase?
As proposed, the rate change would result in a bill increase of roughly $3.50 for a typical residential customer during the first two years. The proposed per month bill increase would be $4.37 in the third year, according to the Maryland Public Service Commission.
Virtual public hearings are planned for 6 p.m. Tuesday, Sept. 13, and Thursday, Sept. 22, according to Delmarva Power’s website, and requests to speak at the first hearing are accepted through the state's Public Service Commission until noon Friday, Sept. 9.
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Companies such as Walmart have petitioned to intervene, as their operating costs could be affected by the electric company’s decision to raise rates.
Delmarva Power is the third Maryland utility to file a “multiyear rate plan” after a 2020 order from the Public Service Commission allowed the change. The first two, Baltimore Gas and Electric and Pepco, are also owned by the Illinois-based Exelon Corp., which owns Delmarva Power.
People’s Counsel Lapp said the multiyear rate plans reduce the incentives for companies to keep costs down, as the plans are based on projections that include capital investments.
“It makes it a lot harder later to argue that those investments were not the right investments to be made,” he said in an interview Wednesday.
Delmarva Power before the Federal Energy Regulatory Commission
While the issues are separate, the scheduled public hearings before the Maryland Public Service Commission come days after the Federal Energy Regulatory Commission said Delmarva Power’s proposed rate increase of about $13.9 million for transmission facilities was not shown by the company to be “just and reasonable.”
A hearing may occur if a settlement is not reached in the case. Lapp, of the Office People’s Counsel, indicated the case may appear before a settlement judge first. A spokesperson for Delmarva Power said the ultimate outcome depends on the settlement discussions.
“We look forward to continuing discussions with all parties, including the Maryland Office of People’s Counsel, to reach a settlement in this proceeding,” Zach Chizar, a spokesperson for Delmarva Power, wrote in an email.
Dwight A. Weingarten is an investigative reporter, covering the Maryland State House and state issues. He can be reached at dweingarten@gannett.com or on Twitter at @DwightWeingart2.
This article originally appeared on Salisbury Daily Times: Delmarva Power plans to raise electricity rates; hikes questioned
